Are You Positioned to Profit from the Next Gold Leg Up?

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...the technicals for gold and gold stocks are looking very strong at the moment, and all signs point to a resumption of the uptrend in the coming few weeks...

Gold and gold stocks have been taking a breather during the past month, after an impressive run which saw the gold price add nearly $200 in just two months, and the Amex Gold BUGS Index (HUI) rocket 50% during that same time period. Gold has been hovering around the $800 mark, and the HUI has been just above 400, both of which should turn into support for the next phase of this upleg.

I use technical analysis to help gauge the future direction of gold and gold futures, but caution against putting too much faith in any single predictive methodology. While I have found it to usually be a reliable indicator, I have also been burned by what appeared to be beautiful technical set-ups and buy signals followed by a sharp decline. And of course the past is not always a reliable indication of the future. But disclaimers aside, the technicals for gold and gold stocks are looking very strong at the moment, and all signs point to a resumption of the uptrend in the coming few weeks... Jason Hamlin, www.GoldStockBull.com

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